The UK’s mid-sized, high growth and entrepreneurial businesses are an essential and dynamic part of the UK economy.

Just look at the data. Last year mid-sized businesses outperformed larger and smaller businesses with a hat-trick of successes – more revenue growth, more profit growth and more jobs being created.

As we look at the long-term future of the UK and the need for a ‘new economy’, these are the businesses that should be at the heart of the Government’s thinking.

Innovative, ambitious and at the forefront of developing new technologies, the UK’s mid-sized entrepreneurial businesses are engines for growth – thriving through internationalisation and employing millions of people.  We call them the UK economic engine.

Yet these businesses are frequently overlooked and undervalued by policymakers. The sheer scale of the largest PLCs means that they can grab attention due to their individual size and investment capabilities; while the very smallest businesses are seen as the most deserving and dynamic sector.

But the mid-sized companies that largely drive the UK economy remain unknown, and their issues and opportunities are not often aired. Effectively these firms fall into a policy and profile gap: too small to make their voices heard amongst larger high-profile enterprises but too big to take advantage of the attention lavished on start-ups.

The economic engine consists of three main parts:

  • the UK’s mid-market companies.
  • high- growth private equity-backed companies.
  • AIM-listed firms.

These businesses make up 1.5 per cent of all companies by number but account for one third of all private sector revenue (£1.2tn).  Their contribution to the UK economy is simply staggering.

We asked three partners for their take on the UK economic engine and to look at each of the three areas in turn.

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